Building a Successful Practice: It is estimated that 70-80% of investors who deal with a stockbroker, financial planner or advisor will change advisors before retirement. Some will make the change while in their fifties, others will wait until their early or mid-sixties. The reason for the change is simple: Investors view their financial person as being “growth oriented,” an accumulator who is not an expert when it comes to structuring income. When the change is made, a retirement specialist is sought.

Clients Change Advisors: Over the past couple of years, the brokerage industry has begun to promote retirement income, but the campaign has been limited and met with skepticism by investors. After all, advisory account compensation is based on assets under management–distributions only erode the advisor/broker base. The retirement benefit specialist has a very different agenda: maximizing periodic distributions at an acceptable risk level.

Investors are generally loyal to their broker or advisor, but such a relationship usually ends once the investor gets serious about retirement planning. It is not that they no longer like their advisor, they simply view this person as not having the expertise to help them with the income phase of their life. Enter the retirement plan specialist.

Retirement Specialist: The vast majority of your peers and competitors promote themselves as being able to do everything for the investor. This makes it difficult for any advisor to differentiate themselves. It is always the specialist we seek out when a problem arises (e.g., car mechanics who specialize in foreign cars, the doctor who only does a certain type of eye surgery, etc.). This is a lesson brokers, planners and advisors have still not learned. For example, how often do you see an advisor who advertises as a “retirement plan specialist” or simply a “retirement specialist?”

The specialist makes the most money and has the least complicated life. A retirement benefit specialist can hone his skills by concentrating on a very narrow aspect of the financial services industry, thereby differentiating himself and minimizing concerns.

Even though it appears the retirement specialist is “leaving money on the table,” the reality is quite different. A portion of a client’s portfolio may be in CDs, government securities and fixed-rate annuities, but another part may be in growth-oriented mutual funds that include a systematic withdrawal plan. And, just because someone is in an income mode does not mean she no longer needs insurance or no longer desires to fund a grandchild’s college fund.

Competitive Edge: During a brokerage firm’s annual meeting in a big conference hall, someone from Harley Davidson rides down the aisle in a motorcycle towards the podium. He parks the bike, steps up to the podium, looks at the audience of surprised advisors and says, “What’s your sound?” Harley’s have a special sound but how many brokers do you know have their own “sound?” No one can distinguish the sound between a Honda, Suzuki, BMW or other bike–except a Harley. This is why the company has trademarked their sound.

What makes you different? Why would someone want you to manage their money instead of a neighbor, friend or golfing buddy who does the same thing? Investment products have largely become “commoditized” and offered by everyone. Ed Slott has made a fortune by becoming the IRA-go-to-guy; he is frequently quoted in publications and is considered an expert. Ed has a lucrative practice of advising brokers, and fee-based seminars and referrals. Someone else could have filled such a position, but Ed was first and will probably not be replaced. You could become the retirement plan specialist in your county or the retirement specialist that is referred by accountants and lawyers.

Understand Your Customers and Prospects: People seek out and feel comfortable with a specialist. The first step to becoming an income specialist or retirement specialist is to obtain certification marks that distinguish you from others. Being a designee shows everyone that you have the specialized training necessary to handle their income needs.

Copyright (c) 2010 Cory Bowman

When it comes to making investments, most people know that there is always room for a possible loss. Stock market investments in particular are rather notorious for taking a rather well funded portfolio and emptying it rather quickly. Of course, that does not happen all the time, otherwise no one would do it. If, on the other hand, you do not want to take what many consider to be an unnecessary risk, there are a number of other investments that are reasonably safer, can still bring a good return, and are definitely worthwhile. Here are a couple of them.

A common phrase that is often used these days to refer to the making of your investments safer is having a balanced portfolio. This means that you are not putting all of your eggs into one basket. You know that some markets are a much greater risk than others, such as trading on the stock market, and so you put some of your investment capital into some that are much safer and less likely to be lost. This “balance,” created by placing some of your investment into a variety of potential interest bearing accounts, should result in an overall gain.

Investments Depend On The Person

If you are a young person, then it should mean that you would be willing to take a higher risk (assuming you have some capital that may be lost). The possibility of the highest gains, unfortunately, also come from the markets with the potential for the highest change. This means that there is a much greater likelihood of a real loss – especially if you do not know what you are doing. By using the services of an experienced trader however, a stockbroker that has been doing it for years, you minimize the possibility of loss. But you should only invest a portion of your finances into the stock market.

If, on the other hand, you are much closer to retirement age, then you do not want to take such a risk with your funds. Instead, you would want to place your soon to be needed funds into a much more stable growth account, where the loss can be minimized and yet still bring a return in interest.

Stable Investing In Trust Funds

If you are looking to stabilize your investments in the stock market with something that is relatively sure, then you need to consider mutual funds. This form of investing places your investment into the hands of investors that basically do the investing for you. They watch the market, manage the funds, and make the changes necessary in order to keep your account growing. After you inform them of what level of risk you are willing to take, then the rest is done for you. They take your funds and spread them over a diverse sort of investments, and it gives you a much more stable package.

The Most Stable Investment – Bonds

Probably the most stable investment you can make is to buy bonds. The safest, of course, are the US Savings Bonds. These are purchased at a set price and guarantee a set interest amount in a specified time period. You cannot get much safer than that – and probably not much is safer than the US Government – investment wise. If you are looking for the highest stability available, then you need to take some of your investment portfolio and add some bonds to it. Bonds are also available from other corporations, cities, etc., but their strength is limited to the financial strength of the company. The longer the time period of your investment – the greater the risk that the company may not be around.

In addition to creating a balanced portfolio, you need either to become very knowledgeable about financial investing, or you need to seek professional counsel. Many people lose a lot of money every year simply because of unnecessary risks. These risks would never have been taken if they had sought counsel from someone who knows much more than they did about the market and investing methods. A truly balanced portfolio will also have an expert to help guide you through the many potential hazards of the investment world.